Financial sector development

In order to promote economic development, it is of particular importance to Member States to foster the development of their market institutions and provide a level playing field to all market participants. Provision of medium term finance by BSTDB and additional mobilization of domestic and foreign capital represent a significant contribution towards reducing the difficulties enterprises, in particular SMEs, face in accessing medium to long-term finance. Thus BSTDB will help selected financial institutions strengthen their balance sheet, match better assets with liabilities, diversify client base, improve portfolio quality.

The BSTDB dealings with financial institutions have three dimensions:

• partners (co-financiers)
• vehicles (intermediaries) and
• clients (borrowers and investees)

Bank operations in the financial sectors of Member States encompass two different approaches, each with its specific set of objectives:

• Creation/Strengthening of specific types of financial institutions
• Promotion of selected sectors or activities.

General terms and conditions for Loans, Guarantees, and Equity are applicable to transactions in the financial sector as appropriate.